Retail Sales, Producer Price Reports Due

Among the economic numbers to watch this week will be November retail sales, followed by the U.S. producer price index for November.

Total retail sales are expected to have risen 0.3% to 0.4% in November after flat sales in October.

The report, due from the Commerce Department on Thursday, is expected to show improving sales at car dealerships. Excluding autos, sales probably rose 0.2%, the fifth increase in the last six months, after a 0.7% gain in October.

Unlike other years, when November sales got a boost from spending on Christmas gifts, last month’s sales will reflect just two days of consumers’ post-Thanksgiving holiday shopping.

Friday’s PPI, a gauge of inflation at the wholesale price level, is expected to be unchanged in November for both the overall index and the core PPI, excluding volatile food and energy prices.

“Producer inflation remains virtually nonexistent outside of the energy complex,” said Steve Wood, chief economist at FinancialOxygen Inc., a Walnut Creek, Calif.-based provider of financial services to banks.

Prices of foreign-made goods also are expected to be tame. The import price index, due from the Labor Department on Thursday, probably fell 0.3% in November, the first drop in five months, after rising 0.1% the previous month.

A more stable stock market and a favorable buying environment are expected to buoy consumer confidence. The University of Michigan’s preliminary index of December consumer sentiment, due Friday, is expected to rise to 85, the second consecutive increase, from 84.2.

Other reports this week:

* Today, the Commerce Department will report on wholesale inventories for October.

* Thursday, the Commerce Department is expected to report the nation’s current account deficit, the broadest measure of international trade because it includes investments.

* Friday, the Commerce Department will report on October inventories at all businesses, including factories, wholesalers and retailers.